Egypt and India on Thursday announced a “strategic partnership” to boost multi-billion dollar trade and strengthen political ties, as President Abdel Fattah al-Sisi concluded a visit to New Delhi.
Facing increasing economic problems, Egypt is working hard to promote international trade and attract investors.
India has become Egypt’s seventh largest trading partner, according to Cairo central bank, with a joint statement issued on Thursday declaring a “record $7.26 billion” in the last fiscal year.
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Sisi and Indian Prime Minister Narendra Modi expect the bilateral trade to reach “12 billion dollars in the next five years,” the statement said, marking a three-day visit by the Egyptian president.
Modi hosted Sisi on Thursday as “guest of honour” for a Republic Day ceremony, marking the anniversary of the adoption of India’s post-independence constitution.
The two leaders agreed to increase Indian investments in Egypt, which currently stand at “over $3.15 billion” according to their statement, including through a potential “dedicated land area for Indian industries in the Suez Canal Economic Zone”.
The statement also notes “strengthened bilateral cooperation” in agriculture, space research and tourism.
The economic crisis in Egypt, triggered by Russia’s invasion of Ukraine last year, has sent the local currency plummeting.
The war has also unsettled global investors who pulled billions out of the North African country.
The Egyptian pound has lost half its value against the US dollar since March, following a devaluation demanded as part of a $3 billion loan agreement with the International Monetary Fund.
In a sign of closer diplomatic ties, Modi has also invited Sisi to participate in the G20 summit in India in September to represent “the interests and priorities of the global south”, their statement said.
The two leaders also called for “comprehensive reforms in the UN Security Council, including by expanding membership categories and strengthening representation for developing countries”.
